Our articles are written by experts in their field and include individual barristers, solicitors, academics, judges, and leading firms in relevant areas of practice. JIBFL offers authoritative insights into global banking and financial law, providing essential updates for legal practitioners and policymakers. Covering key topics like lending, security interests, derivatives, debt capital markets, banking and finance related disputes, crypto, FinTech and financial regulation, JIBFL serves as a trusted resource for navigating complex legal challenges and staying informed in the financial sector. If you would like to contribute, please email Amanda.Cohen2@lexisnexis.com.
Legal Ease with Lexis+®PSL
© Copyright LexisNexis 2024. All rights reserved.
13 June 2024
Breathing Space and Mental Health Crisis Moratoria: is surety liability caught?
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (Regulations) provide individuals in financial difficulties respite from debt collection to allow time to seek professional advice and find a debt payment solution. The Regulations introduce two schemes – the breathing space moratorium (BSM) and the mental health crisis moratorium (MHCM). The moratoria are essentially the same apart from entry criteria and duration. The Regulations come into force on 4 May 2021 (with some exceptions) and apply to England and Wales.
Here we consider the basics of the schemes and how they might apply when individuals (such as directors or shareholders of corporate borrowers) have acted as surety.
Who and how (regs 23-25 (BSM) and 29-31 (MHCM))
Subject to some exceptions where other insolvency/debt schemes are in place...
If you are already a User, sign in
Or you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Alternatively you can subscribe here to read unlimited content.
